Big four auditing firm, Ernst & Young has launched an accounting and taxation tool for cryptocurrency holdings and is targeted to both retail and institutional level clients. The tool is called EY Crypto-Asset Accounting and Tax (CAAT) and facilitating accounting & tax calculations for cryptocurrency transactions and services are currently limited to the United States currently.
The tool will take out crypto transactions related information from virtually all major exchanges, and then it will consolidate data from multiple sources. The tool will automate the production of various reports and dashboards, helping to prepare IRS tax returns for crypto assets.
Marna Ricker, EY Americas vice chair of tax services commented on the launch of the new crypto tax tool:
“EY CAAT exemplifies our commitment to exceptional client service in a changing landscape. We are excited to offer an innovative technology specifically to address our clients’ needs in the crypto-asset space. I appreciate the efforts of the EY Foundry and professionals across our practice who have made this breakthrough.”
Michael Meisler, partner and EY global blockchain tax leader also added:
“The initial validation we have received from the market has been phenomenal, but it only represents the beginning. EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”
The cryptocurrency sector is witnessing a rapid adoption and growth, and with this, the need for an efficient and proper declaration of digital asset tax filing has become necessary. EY is not the only firm, which is targetting this space and building new tools to simplify clients effort.
In January, US’s leading crypto exchange, Coinbase has also ventured into this space and has integrated TurboTax, the tax filing system built by Intuit Consumer Tax Group to professionally handle all the taxation related issues regarding cryptocurrencies.
Chirag Patel, EY foundry leader, also added:
“The world of crypto-assets and cryptocurrency investing continues to evolve. It is the Foundry’s mission to stay ahead of the market as best that we can and to launch new digital solutions and digital businesses to help our clients do the same. EY CAAT is a timely addition to our expanding portfolio of successful new digital businesses at the Foundry,”